Geithner Says Europe Committed To Managing Greek Situation
By Meena Thiruvengadam
Of DOW JONES NEWSWIRES
IQALUIT, Nunavut (Dow Jones)--The U.S. is confident Europe will find a way to properly address Greece's economic troubles, Treasury Secretary Timothy Geithner said here Saturday.
Speaking to reporters after meetings of Group of Seven finance ministers and central bankers, Geithner said European officials "have made it clear to us that they will manage this with great care."
Geithner also stood by a U.S. commitment to maintain a strong dollar.
While finance ministers from the G-7 were expected to spend much of their time here discussing financial-sector regulatory reform, global stimulus efforts, foreign exchange policies and the future of the G-7, economic turmoil in several euro-zone countries has shifted their focus.
For example, a senior U.S. Treasury official said G-7 finance ministers didn't specifically discuss China, whose valuation of the yuan is often the subject of G-7 talks on foreign exchange policies.
But leaders were careful to underscore the continued importance of the entity even as questions of its relevance swirl. The G-7 nations remain the first responders should financial crisis strike again, Canadian Finance Minister Jim Flaherty explained.
Finance ministers spent much of Friday evening discussing Europe and ways to make the most of future G-7 meetings. Discussions of financial-sector regulatory reform efforts were largely pushed to Saturday, a day on which finance ministers also explored igloos built outside a building in which they were meeting. Geithner, Japanese Finance Minister Naoto Kan and U.K. Chancellor of the Exchequer Alistair Darling were among those spotted outdoors.
Still, the senior Treasury official said the U.S. plans to be very tough on its financial institutions as it works to overhaul how the sector is regulated. The official said other G-7 countries--Germany, France, Japan, Italy, Canada and the U.K.--agree with basic principles underpinning U.S. proposals to overhaul financial-sector regulation.
Officials, however, have yet to reach a consensus on the details.
Geithner, at an earlier press conference, said "The United States is very committed to making sure we put in place a strong multilateral level playing field across these global institutions and across global lines."
He emphasized that leaders plan to design frameworks for overhauling financial-sector regulation "in ways that don't undermine prospects for recovery."
-By Meena Thiruvengadam, Dow Jones Newswires; 867-222-2019; meena.thiruvengadam@dowjones.com |
